joint account

How to Divide Expenses as a Couple
Marriage

4 Ways to Divide and Conquer Expenses as a Couple

Money tends to be a sensitive, conflict-sparking subject for couples, so deciding how to split expenses can be tricky.
by


Money tends to be a sensitive, conflict-sparking subject for couples, so deciding how to split expenses can be tricky. There are several different options for dividing payments, each with their own benefits and drawbacks. Here are four of the most common methods for splitting expenses, plus the potential pros and cons of each choice:

  1. Divide all expenses 50/50. Splitting all costs in half is certainly a simple option, but the reactions may be a bit complicated. Sure, everyone's paying their "fair share," but the person who makes less money in the relationship may be frustrated that they're paying a higher fraction of their salary.
  2. Pay in a ratio according to both salaries. If one partner makes $50,000 and the other makes $100,000, then all expenses would be paid in a one to two ratio so that the first person covers one-third of each bill. Dividing costs to correspond with salaries ensures that both partners are spending an equal percentage of their paycheck each month. The downside? Things may get messy with pay raises or pay cuts, and the person with a higher salary may grow resentful.
  3. The breadwinner pays all. This is a good option if one partner stays home with the kids or has an artistic career with sporadic, unpredictable income. To prevent any bitterness, it's important for the nonbreadwinner to take care of other tasks around the home so that the responsibilities feel balanced.
  4. Different bills for each partner. Another way to divide is to simply assign separate bills to each partner. Does one person watch television more often? They can be in charge of the cable bill. Does the other take long, scalding-hot showers? The water bill is theirs. It may be difficult to split things equally, but this is a great way to step back and recognize which habits are costing money.

When it comes to splitting expenses — and feeling satisfied with finances as a couple — the key is communication. Both partners should encourage each other to speak up and be honest about their opinions. It all comes down to balance, so it's important to treat money like any other responsibility and learn to compromise.

Using Secret Bank Accounts
Poll

Would You Feel Betrayed If Your Spouse Had a Secret Account?

A woman recently confessed to the Daily Mail that she's been hoarding her cash in a bank account her husband knows nothing about.
by

A woman recently confessed to the Daily Mail that she's been hoarding her cash in a bank account her husband knows nothing about. She did it to feel a sense of independence and to have a security blanket in case anything goes wrong. Well, I'm guessing it's not a secret anymore, but if you were the spouse who found out about the account, would you feel betrayed?

Separate or Joint Bank Account Debate
community

Savvy Community: Married With Separate or Joint Accounts?

birdsflyinghigh recently asked a question that runs through most soon-to-be-brides minds in the Savvy Q and A group: For those married woman out there, do you have separate or joint bank accounts?
by

birdsflyinghigh recently asked a question that runs through most soon-to-be-brides minds in the Savvy Q and A group:

For those married woman out there, do you have separate or joint bank accounts? Getting married soon and curious what most do?

While 38 percent of SavvySugar readers say they wouldn't feel comfortable sharing joint checking with their boyfriends, many couples — married, or unmarried — do combine their finances. In my mind, talking about the benefits and consequences and setting shared goals are some of the most important factors of starting out an official union on the right foot. What's your take on the separate or joint after marriage debate?

Do you have a personal finance or professional question or concern you are dying to ask someone? Share it in the SavvySugar Community using our new super simple ask feature.

What to Consider When Opening a Joint Account, Back to Basics
banking

Back to Basics: When Two Become One

It's something a lot of couples argue about.
by

It's something a lot of couples argue about. Often it's more important to one of you than the other. But when one of you slips, both of you suffer. What am I talking about? Money, of course. Because money can be such a sharp point of contention in relationships, it's important that you come up with a financial plan that works for both of you.

Whether or not the last names on a joint account are identical, the money in that account belongs to both of you. But you're each responsible for keeping track of spending. You may have been a master of tracking when you had an account to yourself, but this becomes more difficult when two people have access to one account. But difficult doesn't mean impossible — it just means the two of you really have to communicate.

Coming up with a joint-spending plan is one of the first conversations you should have about your shared money. There are plenty of computer programs, like Mint and Quicken that keep track of all expenditures so you can see exactly where your money is going. And if all of your bills aren't set up for automatic payments each month, make sure you know who is responsible for making timely payments to avoid any late fees.

What are your tips for managing a joint account?

Source

What Happens to Credit Report After Marriage
Wedding

What Happens If My Husband Has Bad Credit, or No Credit at All?

You know it's important to maintain your own credit identity when you're married, but here's what ehadams is curious about: "What happens to credit when you get married?
by

You know it's important to maintain your own credit identity when you're married, but here's what ehadams is curious about: "What happens to credit when you get married? For example, if he has bad (or no credit) and you have excellent credit, what happens?" The answer to this is less complicated than going through the process of changing your last name! Find out what it is when you read more

Do You Spend Without Checking in With Your Husband?
Wedding

Do You Spend Without Checking in With Your Husband?

If you wanted to buy, say a new pair of Loubs to fulfill your everlasting desire for red-soled shoes, would you have to consult your husband?
by

If you wanted to buy, say a new pair of Loubs to fulfill your everlasting desire for red-soled shoes, would you have to consult your husband? And if he wanted to go on a Best Buy binge, would he need to check in with you to negotiate a limit?

Discussing spending priorities is a must when you're pooling your money, and some couples make a rule that they cannot spend over a certain amount without first checking with each other. Is there a rule in your household that calls for checking in, or do you have total freedom when making a purchase?

Financial Considerations For Newlyweds
Wedding

Financial Considerations For Newlyweds

Ideally you hashed out the His and Hers money issues before you said I do, and beginning your marriage with openness about finances will set the tone for constant and comfortable communication.
by

Ideally you hashed out the His and Hers money issues before you said I do, and beginning your marriage with openness about finances will set the tone for constant and comfortable communication. A good place to start is the three-bucket approach: One shared and two individual accounts helps to maintain a sense of independence while combining funds for shared expenses eases you into the idea of combining funds, though this approach isn't for everyone.

You can always rethink your married money situation later if you feel another approach better suits you, as there's not a single formula that works for all couples. There are additional money issues to consider aside from spending habits and who is responsible for paying off which debts. Find out what they are when you read more

Would You Get a Joint Checking Account With Your Boyfriend?
Poll

Would You Get a Joint Checking Account With Your Boyfriend?

We've shared opinions about combining money (or not) as a married couple, but how many of you have ever explored the idea of opening a joint account with your boyfriend?
by

We've shared opinions about combining money (or not) as a married couple, but how many of you have ever explored the idea of opening a joint account with your boyfriend? I can see how it could be convenient if you're living together and splitting bills, but it doesn't seem like it's a common thing to do before a couple is engaged or married. What's your take?

Source

Tax Tip for Married Couples
Marriage

Tax Tip For Married Couples

Just because you've promised to be there for your guy through good times and bad, it doesn't mean that filing jointly is the best option for you.
by

Just because you've promised to be there for your guy through good times and bad, it doesn't mean that filing jointly is the best option for you. You want to pay the least amount of taxes overall, so make sure you run the numbers for filing jointly and separately before opting for one or the other. When would you consider filing separately? To be eligible for certain deductions, couples may benefit from this type of filing if one of you has large medical expenses or business expenses, or if one of you had significant theft losses.

It may be a good idea to ask for professional help the first time you file taxes after marriage to ensure that you're filing in such a way that will get you the lowest overall tax bill. Remember to check out our tax prep giveaway! When you're filling out your tax returns for 2007, keep in mind that your tax status is determined by your marital status on Dec. 31, 2007.

Source

Should Marriage Mean Combining Finances?
Marriage

Should Marriage Mean Combining Finances?

There are two questions I hear most when people find out I’m engaged: Am I going to take his last name, and how are we going to handle our finances?
by

There are two questions I hear most when people find out I’m engaged: Am I going to take his last name, and how are we going to handle our finances? The second question is an important one for couples to consider when getting married, though don’t you think it’s funny that this is one of the only times other people don’t consider money talk to be taboo?

There’s no right answer in terms of whether or not a couple should combine their finances; the real answer is to do what’s right for you and your unique situation. Some people feel like there’s no need to combine any money and think it’s easier to leave things be, others struggle with letting go of the independence of controlling their individual money, and some have zero gripes about creating one big love and money pot. Then, of course, there’s everyone in between. To see my solution just read more